The Power of Culture: Does Diversity Affect the Breakthrough of the Hu Line in China?

Hu line is the dividing of Chinese population density, geography, culture, and economy. The areas on both sides are in completely different stages development, have development modes. Based 3D research framework, using panel data 335 cities China from 2000 to 2013, our study examines driving factors influence mechanism productivity HU line. We find that economic growth low-density depends more increased density division, while high-density decreases distance segmentation. In addition, test illustrates heterogeneous cultural diversity promotes by promoting diversified economy; identity specialized economy thus growth. Our provides new empirical evidence for informal institutional reasons behind also a useful reference multi-ethnic China.